JAPAN ASEAN RELATIONS

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1 JAPAN ASEAN RELATIONS Rotary Club Jakarta April 16, 2013 Kimihiro Ishikane Ambassador of Japan to ASEAN 1

2 Table of Contents Japan-ASEAN : Strategic Partners People to People Connectivity Kokoro no tomo (Heart-to-Heart relations) ASEAN To Face Many Challenges Conclusion 2

3 Japan-ASEAN :Strategic Partners 3

4 ASEAN-Japan Strategic Partners Strategic Importance of ASEAN-Japan Relations o Vibrant economy with 600 million of people(asean). o World No.3 Economy, Free Democracy with Rule of Law (Japan). o ASEAN and Japan share common interests in achieving - Regional architecture underpinning Peace and Prosperity of East Asia - Freedom of navigation in the area ASEAN and Japan are Deeply Interconnected in Economy & Human Flows o ASEAN and Japan are mutually second largest trading partner. o ASEAN is Japan s biggest investment destination in East Asia (1.5 trillion yen, 2011). Japan is top individual country investor to ASEAN. o ASEAN is a production base for Japanese companies. o Trade/Investment liberalization is underway through EPAs. o ASEAN is one of the favorite tourists destination for Japanese and more ASEAN people going to Japan. 4

5 Japan-ASEAN Relations : Close Economic Ties (2011:IMF) ASEAN s Trading Partners China 18.1% Japan 13.8% EU12.9% US 10.8% Middle East 7.1% ROK 6.8% Hong Kong 5.5% India 3.9% Aus 3.6% Others 17.5% (2011: Ministry of Finance) Japan s Trading Partners China 20.6% ASEAN 14.8% US 11.9% Middle East 11.1% EU 10.5% ROK 6.3% Aus NZ 4.7% Countries Investing to ASEAN Countries Japan is Investing to US 28.6% ( :ASEAN Secretariat) EU % ASEAN 14.0% Japan 13.5% US 9.7% China 3.1% ROK 2.9% Aus 1.4% India 1.4% Canada 1.2% NZ 0.2% Others 27.9% EU 22.3% South America 12.7% ASEAN 11.5% China 8.6% ROK 1.9% Hong Kong 1.8% Taiwan 1.2% Others 11.4% (End of 2011:Bank of Japan) 5

6 ASEAN is one of the major investment destinations for Japan (next to the United States, EU and South America) Japan s Foreign Direct Investment: Regional Breakdown (end of 2011:JPY 74,828 billion) Japan Foreign Direct Investment to ASEAN is next to the United States, EU and South America. Others 11.4% South America 12.7% EU 22.3% ASEAN 11.5% China 8.6% US 28.6% Taiwan 1.2% ROK 1.9% Hongkong 1.8% Source: the Bank of Japan, Direct Investment Data) Japan s Foreign Direct Investment to ASEAN has increased over the years. Source: the Bank of Japan, Direct Investment Data) (JPY bn) 90,000 9,000 80,000 8,000 70,000 7,000 60,000 6,000 50,000 5,000 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 Japan s FDI (Accumulative: by Major Economies in East Asia) ASEAN China Taiwan ROK Hongkong (Year End) 6

7 ASEAN is an important base of production & sales for Japan Number of Production Base & Subsidiary of Japanese Companies Overseas Amount Figure 1. Foreign Subsidiaries of Japanese companies Amount Figure 2. Production Bases of Japanese Companies overseas China China North America North America India, Vietnam & Other Asian countries Year India, Vietnam & Other Asian countries Year ( 1) China has been counted separately since 1993, while other Asian countries since ( 2) Singapore is in NIEs until 1998, then joined into ASEAN from EU means EU15 since Source: JBIC International Research Office 7

8 Countries/Areas which Japanese Manufacturing Companies Target in Mid-Term (Around 3 Years) 2011 Ranking Country Rate (%) 1 China India Thailand Vietnam Brazil Indonesia Russia USA Malaysia Taiwan Republic of Korea Mexico Singapore Philippines Turkey Australia Bangladesh Cambodia Myanmar UK 1.2 ASEAN Member States Source: Japan Bank for International Cooperation (JBIC) 2010 Ranking Country Rate (%) 1 China India Vietnam Thailand Brazil Indonesia Russia USA Republic of Korea Malaysia Taiwan Mexico Singapore Philippines Australia Bangladesh Turkey German UK Myanmar Poland Saudi Arabia South Africa United Arab Emirates 1.0 8

9 People to People Connectivity Kokoro no tomo(heart-to-heart relations) 9

10 The Number of Japanese Living in ASEAN Member States Laos Myanmar Malaysia Vietnam Brunei Darussalam Philippines Thailand Singapore Cambodia Indonesia 10

11 The Number of Foreign Students From ASEAN Member States The Number of Foreign Students from ASEAN Member States has increased over the years. 14,000 12,000 10,000 8,000 6,000 4,000 Brunei Darussalam Singapore Laos Cambodia Philippines Myanmar Indonesia Thailand Malaysia Vietnam 2,

12 PERSADA (Perhimpunan Almuni Dari Jepang) PERSADA was established in 1963 as an association of former Indonesian students studied in Japan. Head Quarter is located in Jakarta with 16 local branches. Around 2,500 members participate in various alumni activities. Mr. Rachmat Gobel serves as the President. PERSADA runs PERSADA University with about 1,400 students. PERSADA has enrolled as a member of ASCOJA and hosted all ASEAN alumni get-together in 2007 in Jakarta. 12

13 ASJA International (ASIA Japan Alumni International) In 1977, ASCOJA (ASEAN Council of Japan Alumni) was established to promote exchange among alumni associations of former international students from ASEAN countries to Japan. There are 10 ASEAN countries participating in ASCOJA. In 2000, ASJA (ASIA Japan Alumni International) was launched with the support of the Japanese Ministry of Foreign Affairs to promote mutual understanding and networking among former international students to Japan from Asia-Pacific countries. ASJA provides scholarships and a total of 78 students have completed their study in Japan since They are expected to play an active role in their respective country. 13

14 JENESYS(Japan-East Asia Network of Exchange for Students and Youths) First program was launched 2007 to deepen mutual understanding among youth who will assume important roles in the next generation in East Asian countries and establish a basis for Asia s solidarity and promote friendship. Under the first program about 13,500 youths from ASEAN countries (among which about 2,300 Indonesians) were invited to Japan. They visited various cultural, economic and social facilities in Japan and had opportunities to interact with Japanese friends and citizens. Second program JENESYS 2.0 was announced Jan 18, 2013 in Jakarta by PM Abe. The program aims at inviting approximately 10,000 youths from ASEAN Member States. Traditional culture experience Discussion among participants School Visit Sports exchange Homestay Factory tour 14

15 Feelings Toward Japan in ASEAN Q:Do you think Japan today is trustworthy as a friendly nation? % responded positively 0% 20% 40% 60% 80% 100% trustworthy rather trustworthy rather less trustworthy not trustworthy no idea Q:What do you think that Japanese companies expand their business, invest and set up factories in your conuntry? % 20% 40% 60% 80% 100% 93% responded positively welcoming rather not welcoming no idea rather welcoming not welcoming Source : MOFA, Japan Surveyed countries:indonesia, Malaysia, the Philippines, Singapore, Thailand, Viet Nam 15

16 Friends in needs, Friends indeed 16

17 ASEAN Member States Supports For The Earthquake Victims in Japan, March 2011 Country Material Receiving Location Indonesia Blankets, foods, canned rice sets, donation Iwate Pref., Yamagata Pref., Saitama Pref. Singapore Blankets, water, mattresses, plastic tanks, emergency foods, donation Miyagi Prefecture Malaysia Packed foods Miyagi Prefecture Philippines Packed foods, cup noodles, bath towels, mats, Iwate Pref., Miyagi Pref. Source: MOFA, Japan 17

18 ASEAN Member States Supports For The Earthquake Victims in Japan, March 2011 Country Material Receiving Location Vietnam Brunei Darussalam Towels, shoes, underwears for children and adults, disposable chopsticks Donation Iwate Pref., Miyagi Pref. Laos Myanmar Donation Donation Cambodia Donation Source: MOFA, Japan 18

19 ASEAN Caravan Of GoodWill Under the leadership of the former Secretary-General of ASEAN Dr. Surin Pitsuwan, 44 volunteers from ASEAN member states, including the victims of 2004 Indian Ocean Tsunami, and 28 volunteers from ASEAN member states who were studying in Japan visited Ishinomaki to boost the morale of the victims, where after shock was still felt. Copyright: ASEAN Secretariat 19

20 Special ASEAN Japan Ministerial Meeting In response of the Great East Japan Earthquake, ASEAN decided to hold the Special ASEAN-Japan Ministerial Meeting on 9 April Copyright: MOFA, Japan 20

21 Supports From Japan For Earthquake Victims in Aceh, Indonesia 2004 Copyright: Ministry Of Defense - Japan 21

22 Japan Supports for Flood Victims in Thailand 2011 Copyright: JICA 22

23 Japan s Support For The Operationalization Of The AHA Center ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management (AHA Centre) serves as the regional hub for disaster monitoring and analysis, preparedness, response, and technical and scientific cooperation Copyright: AHA Centre 23

24 ASEAN To Face Many Challenges -Why ASEAN matters to you and to us? -Something more than addition of 10. -Power of networking and connectivity 24

25 3 Pillars of ASEAN Connectivity and their relations In order to promote distribution of goods after the construction of infrastructure, it is necessary to introduce a system to facilitate transnational movement of goods. Strengthening of Institutional Connectivity increases the need for infrastructure development. Institutional Connectivity Rationalization and minimization of Non Tariff Barriers Simplification of Customs procedure Graduated reduction of investment regulations Physical Connectivity Construction of roads Construction of Ports and Harbors Establishment of maritime traffic network Construction of tunnels Establishment of Internet Network Movement of people enhanced by construction of infrastructure has effect on promotion of tourism. Active movement of people enhances the need for construction of infrastructure People-to-People Connectivity Relaxation of visa control within ASEAN Relaxation of visa issuance for foreign passengers Development of tourism products Promotion of movement of skilled workers within ASEAN Investment promotion leads to enhanced people exchange Tourism promotion enhances service distribution. 25

26 To India Yangon EWEC Myanmar Mawlamyaing Dawei Bangkok JAPAN S Vision for Supporting ASEAN Connectivity Da Nang, Vietnam ~ Mawlamyaing, Myanmar SEC Ho chi Minh, Vietnam ~ Dawei, Myanmar Vientiane Kunming Laos Thai Penang <Soft Infrastructure projects of on all ASEAN regions> Examples 1. ASEAN Smart Network 2. Support on Smooth logistics of people and goods crossing the border 3. Establishing common rules for standards for Automotives Hanoi Cambodia Sihanoukville Port Singapore Da Nang Neak Loeung Bridge Vietnam Ho Chi Minh Malaysia Tanjung Priok Indonesia Muara Philippines Cebu Davao Bitung Ring Shipping Route to be improved described in M/P Chap.3 Potential International Route described as Key Action in M/P Chap.3 Support for enhancing connectivity in all ASEAN regions <Formation of the Vital Artery for East-West and Southern Economic Corridor> Infrastructure development and connection between the South China Sea and the Indian Ocean in Mekong region Develop the South Corridor connecting Ho Chi Minh, Phnom Penh, Bangkok and Dawei as well as East- West Corridor expanding from Da Nang to Mawlamyaing. Development of the both corridors to enable overland access across Indochina Peninsula, which lead to a great benefit on the transportation and distribution of goods. Example Projects 1. Missing link Development(e.g. Neak Loeung Bridge in Cambodia, South-North Expressway in Vietnam) 2. Port Development (e.g.:cai Mep Thi Vai International Port in Vietnam, Sihanoukville Port Multipurpose Terminal in Cambodia, etc.) <Maritime ASEAN Economic Corridor> Consolidating Connectivity through the development of port, port-associated industries as well as energy and ICT network, targeting on the cities of Malaysia, Singapore, Indonesia, Brunei and the Philippines. Support the Vision of Indonesia Economic Development Corridor. Example Projects 1. Development of the Roll-on/Roll-off(RoRo)Network and short-sea shipping (Philippines, Indonesia etc.) 2. The development of vessel traffic service system (Indonesia etc. ) 26

27 Conclusion ASEAN-Japan relations are getting closer and closer, assuming growing strategic importance. ASEAN-Japan people to people ties are getting stronger, underpinning developing strategic relations. We are Friends in needs, Friends indeed. ASEAN-Japan relations will continue to grow because they are beneficial to both. ASEAN is a challenging project everyone wishes to see succeed. 27

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